M1 Finance

Robinhood DRIP: Dividend Reinvestment Program


2020 Robinhood dividend reinvestment plan fee and setup, commission, fractional shares. Robinhood DRIP program enrollment for stocks, mutual funds, ETFs, and ADRs. Is it free?



Robinhood DRIP Plan


Any dividend-paying stock or ETF that supports fractional shares is eligible for Dividend Reinvestment at Robinhood.


How do I get started?


To enable Dividend Reinvestment, go to Account (Person Icon) > Investing > Dividend Reinvestment. Then, toggle the switch on and complete the onboarding process, if prompted.

Once you enable Dividend Reinvestment, you’ll see a list of investments you own or have previously owned with a pending dividend that are eligible for dividend reinvestment. These investments will reinvest dividends by default, but you can choose which of these investments you’d like to reinvest cash dividends for by tapping the circle or checkmark.


How do I see my pending and past dividend reinvestments?


To see all your pending and past dividends and dividend reinvestments:

Tap Account (person icon)
Tap Statements & History

You’ll see a list of all of your history on Robinhood, including your dividend reinvestments.

To see your pending and past dividends and dividend reinvestments for an individual stock, go to the individual stock detail page. You’ll see pending dividends and pending dividend reinvestments under “Upcoming Activity,” and past dividend payments and reinvestments under “Your History.”


Robinhood Promotion


Get one free $3-$7 value stock when you open an account.

Open Robinhood Account


Robinhood Alternative


For DRIPs as well as IRA accounts, website trading, mutual funds and bonds investing you can use another $0-commission broker - Ally Invest.


Open Account


Up to $3,500 cash bonus + $0 commission trades.

Open Ally Invest Account


Ally Invest Review


Ally Invest rating

Read detailed review of Ally Invest »





Robinhood Advantages


  • Commission free trades on U.S. listed securities
  • Easy-to-use mobile application
  • Real time market data
  • Smart notifications sent directly to smartphone
  • Fast execution on trades
  • Easy to set up account
  • Straightforward pricing and fees
  • App is optimized for the Apple watch


Robinhood Disadvantages


  • No desktop trading platform
  • Limited stocks and ETF's research capability on mobile app
  • Does not offer IRA, Health Savings Accounts, or 401k accounts
  • No brick and mortar stores
  • No mutual funds or bonds


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Robinhood Account Review


Robinhood Trading rating

Read detailed Review of Robinhood Trading

Robinhood is an online brokerage company that offers commission-free trading on their pretty basic mobile app. Unlike traditional online brokerages, Robinhood is mostly a mobile-based brokerage. The firm has no brick and mortar stores. The app is simple and well designed, but currently only offers brokerage accounts. The firm does not offer IRA, HSA, or 401K accounts.





Is Robinhood App Good for Beginners?


Investors who are learning the ropes in the world of securities will find a low amount of material on the Robinhood website. There are almost no articles to be found there on a wide range of issues, from trading in options to the tax implications of investing. Other firms have much more material on their websites. E*Trade, for example, offers videos on financial topics, which Robinhood does not offer. Fidelity has far more material than Robinhood, including self-guided courses and infographics.

Robinhood's website was recently revamped, which has made it more user-friendly. However, unlike many other brokers there is no handy trade ticket at the bottom of the browser that makes buying and selling easier. There is no trading platform is available at Robinhood. The broker does not offer any paper trading services, which would be perfect for new traders. TD Ameritrade does have paper trading on their platforms.

Robinhood falls short by not offering any mutual funds or bonds, which new traders could buy and sell. Almost all other firms do provide these securities, including Schwab and Vanguard.

Novices might prefer 24/7 customer service over the phone, which Robinhood doesn't offer. There are no retail locations, which would be beneficial to clients who want in-person service. By and large, Robinhood doesn't do well here.





Is Robinhood a Good Choice for Active Traders and Shorting Stocks?


Traders who buy and sell frequently will benefit from Robinhood's low $0 commission. Most other brokers have a higher rate, including Etrade ($0) and Ally Invest ($0). Robinhood Financial also introduced options trading at no commission. Most firms charge 65¢ per option contract.


Summary


Robinhood attracts investors for its low transaction fees. Along with Firstrade it is one of the best priced brokerage houses in the United States.